May 27, 2023
Gemini, Genesis Seek Dismissal of SEC Lawsuit for Crypto Lender’s Unregistered Securities
Gemini, a leading cryptocurrency exchange, and bankrupt crypto lender Genesis Global Capital have filed for the dismissal of a Securities and Exchange Commission (SEC) lawsuit. The SEC alleges that Gemini Earn, which allows customers to lend crypto assets such as Bitcoin to Genesis, is an unregistered security.
The companies’ legal filings argue that Gemini Earn should not be classified as a security and that the transactions were essentially loans. Furthermore, Gemini claims responsibility for the customer-facing aspects of the program. In a blog post, the exchange criticized the SEC lawsuit as “ill-conceived”.
Following the SEC’s lawsuit in January, Genesis filed for bankruptcy, leading to Earn users facing withdrawal restrictions. In response, Gemini filed a comprehensive claim to recover over $1.1 billion in assets for 232,000 Earn users.
Gemini and Genesis’s parent company, the Digital Currency Group (DCG), are in mediated negotiations to develop a restructuring and settlement agreement. However, a preliminary deal from February has yet to be finalized and DCG missed a $630 million loan payment to Genesis earlier this month.
In order to ensure the optimal outcome for Earn users, Gemini and other creditors are collaborating on an “amended plan of reorganization” that can be pursued independently if the mediation process fails. Jack Baughman, a founding partner of JFB Legal, which represents Gemini, tweeted that the SEC’s case is making it harder and more complicated to retrieve assets from the Genesis bankruptcy. He added that it does nothing to speed up the process and unlock assets that need to be returned to Earn users.
The SEC’s lawsuit has brought attention to the importance of NFT marketing and promotion. NFTs, or non-fungible tokens, are digital assets that are unique and can be used to represent ownership of a digital asset. NFTs are becoming increasingly popular in the web3 space and are being used for a variety of purposes, including digital art, gaming, and more.
Given the popularity of NFTs, many companies are turning to NFT marketing agencies to help them promote their products and services. These agencies specialize in helping companies create and execute effective NFT marketing campaigns, including through social media channels such as Twitter.
NFT marketing agencies can help companies reach a larger audience and increase their visibility in the web3 space. They can also help companies create and execute effective strategies for selling NFTs. By leveraging the expertise of an experienced NFT marketing agency, companies can maximize the potential of their NFTs and maximize their returns.
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